Scalping Stocks is not for the faint of Heart. It requires extreme discipline, knowledge of charting patterns, Candle stick patterns, Stochastic’s, MACD, Volume and understanding the particular Stock’s Behaviour. However in this article I will explain my take on Scalping Stocks and the steps I take for these types of Long or Short Scalp trades to make it easier.
To Begin with you must realise that I do not aimlessly crawl through the UK and US Equity markets purposely looking for potential Scalping opportunities. My Scalping Stocks strategy is born out of the Mid and Longer term trades I have open on both Daily and Weekly Charts. The first RULE for Scalping Stocks is to understand the overall direction of the stock that you are going to Scalp. I fully understand this with my trades as I do so much work on the Mid/Long term trades in which my Scalps are taken from. I truly understand he Stocks Direction and its behaviour before I enter a Scalp trade. In Essence I use my Scalping Stocks Strategy to initially Hedge against my potential 1% Loss that I risk on the Main Mid/Long Term. Then I use them to Turbo Boost my Profits!
The basic indicators that I use to setup and enter my Scalping Stocks strategy are designed to ensure I have the highest Probability of success with these trades. Further observations that I make will be mentioned in the case studies further down this article. I always use the 5 minute time frame for my Scalping Stocks strategy.
1. Simple Double Candlestick patterns for scalping stocks
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